Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
In point of time, public aid by the states was quite unevenly
distributed.[25] Massachusetts and Maryland, about 1826, were the
first to take notice. But in the northern states most of the activity
was confined to the period of 1837-1840; whereas, in the South,
governmental subsidies did not become frequent until 1850. The whole
movement, so far as the separate states were concerned, came to an end
about 1870; after which time, with the exception of Massachusetts and
Texas, little more financial encouragement of the sort is recorded. In
many instances the hands of legislators were tied by constitutional
prohibitions; and in other cases the railway net had been so far
completed as to lessen the zeal of the public in the work. The centre
of interest after the Civil War, in fact, is to be found in the
activities of the Federal government.
More than a broad-line sketch of the land grants and subsidies to
railroads by the United States would be out of proportion.[26] Sporadic
grants in the South were made directly as early as 1835; but the first
considerable transfer was made by act of Congress in 1850. This statute
ceded to the state of Illinois the alternate, even-numbered sections
of land for six sections in width on each side of the projected
Illinois Central Railroad and its branches. The state then promptly
turned over these lands to the promoters of the line. The Federal
government lost nothing by the transaction. Rather did it gain,--the
lands having been long in the market,--through the sale of the odd
sections at a more than doubled price. Similar extensions of this grant
soon followed down through Alabama and Mississippi. Then other states
demanded recognition. Missouri, Arkansas, Iowa, Louisiana, Wisconsin
and Minnesota were in turn appeased. The last direct grant to a state
was made to Michigan in 1872. With the rise of interest in the Far
West, the Federal government during the Civil War period inaugurated a
new policy of direct charter and subsidy. Under this plan most of the
transcontinental lines were built.
The Union Pacific Railroad was the most notable beneficiary of the
Federal government. Its experience may be offered as typical. By
an act of 1864, twenty alternate sections of land per mile were
granted, together with a subscription to junior bonds to the amount
of $27,600,000. With this substantial encouragement the road was soon
completed. The following table gives details concerning the succeeding
grants to other companies.[27]
_Federal Aid to Railroads_
Bonds Lands ($1.25 per acre.)
Public-domain text, read in full here on John Shaqi.
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